There are already answers saying use of Bit. I will add more to these answers.
You should use bit for representing Boolean values.
Remarks from MSDN article.
Bit can take a value of 1, 0, or NULL.
The SQL Server Database Engine optimizes storage of bit columns. If there are 8 or less bit columns in a table, the columns are stored as 1 byte. If there are from 9 up to 16 bit columns, the columns are stored as 2 bytes, and so on.
The string values TRUE and FALSE can be converted to bit values: TRUE is converted to 1 and FALSE is converted to 0.
Converting to bit promotes any nonzero value to 1.
NOT NULL
As Bit have values 1, 0 and NULL. See truth table for this. So plan values accordingly. It might add confusion by allowing NULL value for bit data type.